Do You Have To Renew Home Insurance Every Year?

Wondering what is homei insurance? A home insurancei policy is a smarti way to ensure thati your house, belongings, andi savings are secured fromi otherwise unforeseeable events. Homei insurance policies can compensatei you for damages incurredi by the structure ofi your home, ancillary &i supporting structural elements toi your home, the contentsi of your home, andi your valuable items ini a home you doi not own but arei renting. Understanding the mechanicsi of your home insurancei policy can calibrate youri expectations. You will knowi what the premium youi are paying is, thei tenure of coverage, whati is included in youri insurance plan, and thei exclusions of your insurancei plan. The tenure ofi your home insurance policyi and the renewal datei is critical to availi home insurance benefits fori yourself. Here are somei insights to help youi understand the mechanics ofi a home insurance plani in detail.  

Simple Vs.i Long-Term Home Insurance Policies

Homei insurance policies are availablei in two formats, dependingi on the tenure ofi the policy:

1. Simple Policies: Suchi policies tend to coveri the home for anywherei between one to threei years or a littlei more. Since the tenurei is shorter and thei risk is established, youi might find these policiesi to be relatively cost-effectivei compared to the long-termi policies.
2.  
3. Long-Term Policies: These arei policies that are designedi to provide long termi cover to your estate.i They can have tenuresi as high as 30i years. However, the policy'si tenure also increases thei possible quantum of damagesi it can incur overi its lifetime. And asi this becomes riskier fori the insurer, it isi common for such policiesi to be relatively morei expensive.

Now, should you goi for a long-term policyi or a short-term policy?i While the short-term policy’si premiums may seem morei affordable for the timei being. But, if youi increase them every threei to four years andi have to buy thei same policy multiple timesi over the lifecycle ofi a property, will iti still be equally affordable?i Answering this will helpi you understand what typei of policy you shouldi get.  

Do I Havei to Renew My Homei Insurance Every Year?

To understandi the answer to 'doi I have to renewi my home insurance everyi year,' just evaluate thei tenure of your homei insurance policy. If youri policy covers your homei and its contents fori one year, you willi have to renew thei home insurance policy everyi year. If it isi a long-term policy, youi can renew it justi before the tenure ends.i  

Benefits of Renewing Homei Insurance Policy

1. It keeps youri savings intact against damagesi incurred by your home,i contents, and the supportingi infrastructure.
2.  
3. It makes your homei more attractive for ai buyer. While the homei insurance plan itself isi not transferable, the buyeri will have some assurancei that the previous owneri was responsible and neveri cut corners in servicingi the home after ani instance of considerable damage.
4.  
5. Renewingi your home insurance plani helps you stay updatedi with the value ofi your home and itsi contents. Since each renewali will require some formi of revision of thei valuation metrics, it willi keep you informed abouti the home's expected pricei and its contents.
6.  
7. You cani keep your estate securei for your future generations.i Home insurance policies renewedi in time will ensurei you can maintain thei property and its contentsi for a long time,i even if the estatei incurs some form ofi damage. This way, youri future generations can directlyi avail the benefits ofi home-ownership without getting intoi the real estate market.

 

Whati is Home Insurance Renewali Dependent Upon?

You can nowi renew your home insurancei plan online. Generally, youi would not need muchi more than your identityi proofs, ownership proofs, salaryi data, tax returns, andi previous insurance documents abouti the home being insured.i Here are some elementsi the home insurance plan’si renewable depends on:

1. Condition ofi the home you arei trying to cover withi the insurance plan.
2.  
3. Depreciated andi market value of alli the contents you wanti to get covered.
4.  
5. Geographic locationi of the home. Iti is common for homei insurance to be morei expensive in zones morei prone to natural calamities.
6.  
7. Financiali background of the homeowneri or home content owneri seeking insurance.
8.  
9. Criminal record ofi the homeowner or thei home content owner seekingi insurance.
10.  
11. Available tenure on thei existing home insurance plan.

 

FAQs

1. Howi early should I begini the renewal process fori my home insurance?

It dependsi on the tenure ofi your home insurance plan.i If it expires ini a year, you shouldi consider renewing it ai few months or weeksi before it expires. Thisi will give you enoughi room to finish thei documentation.  

1. How Can Ii Renew My Home Insurancei Plan?

You can do soi online or get ini touch with your insurancei agent.